Answered step by step
Verified Expert Solution
Question
1 Approved Answer
i need help answering this question. The following are the selling price, variable costs, and contribution margin for one unit of each of Banner Company's
i need help answering this question.
The following are the selling price, variable costs, and contribution margin for one unit of each of Banner Company's three products: A. B, and C: Due to a strike in the plant of one of its competitors, demand for the company's products far exceeds its capacity to produce. Management is trying to determine which product(s) to concentrate on next week in filling its backlog of orders. The direct labour rate is $10 per hour, and only 3,280 hours of labour time are avallable each week. Required: 1. Compute the amount of contribution margin that will be obtained per hour of labour time spent on each product. (Round your intermediate calculations to 1 decimal place. Round your answers to 2 decimal places.) 2. Which orders would you recommend that the company work on next week-the orders for product A, product B, or product C ? Product A Product B Product C 3. By paying overtime wages, more than 3,280 hours of direct labour time can be made available next week. Up to how much should the company be willing to pay per hour in overtime wages as long as there is unfilled demand for the three products? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started